WHO WE ARE (DATA AS OF )

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2 WHO WE ARE (DATA AS OF ) 515 volunteers give 22,609 hours 10,345 received $21 million in refunds $1.9 million saved by 1,290 people 150+ receive financial coaching every 6- months Advocate for tax credits, asset building, and consumer protection Lead the Financial Access in Reach (FAIR) initiative

3 YOU WILL LEAVE KNOWING All of Prepare + Prosper s free services Who should file taxes Tax credit basics Ways to get involved

4 TAX AND FINANCIAL SERVICES

5 FREE TAX PREPARATION IRS-certified volunteers, who are passionate about taxes will help you get the maximum refund

6 WHAT CAN WE HELP WITH? Year-round tax assistance (state & federal) Self-employed Remote Tax Preparation Apply or renew an ITIN Previous year returns Amended tax returns Language interpreters: Spanish

7 Imagine a time when savings would ve made all the difference.

8 DO YOU QUALIFY? Annual income qualifications: Individuals = $35,000 or less Families = $55,000 or less Self-employed = $55,000 or less

9 BRING YOUR DOCUMENTS 1. Personal information 2. Year-end income statements 3. Education and child care credits 4. Property tax refunds and deductions 5. Additional documents

10 FIND A TAX SITE Prepare + Prosper Main office(prospect Park, St. Paul) Hallie Q. Brown Community Center (Summit-University, St. Paul) Merrick Community Center (East Side, St. Paul) Minneapolis Urban League (North Minneapolis) East Side Neighborhood Services (Northeast Minneapolis) Hope Community, Inc. (South Minneapolis) Sabathani Community Center (South Minneapolis) Creekside Community center (Bloomington) Resource West (Hopkins)

11 FIND A TAX SITE Appointment Sites Visit prepareandprosper.org or call Walk-in sites Everyone present at sign-in time has a chance to be served, order is randomized through a computer program. Self-employment sites Those who made more than $6000 must make an appointment at P+P main office tax clinic Open Mondays & Wednesdays

12 INTEGRATED FINANCIAL SERVICES Tax time is a money moment: Boost your emergency savings with a saving account Invest in a kid s future with a U.S. savings bond Request a free copy of your credit report Conquer your debt working with a financial counselor Sign up for Money Mentors: free financial coaching

13 If your filing status is Single Married filing jointly WHO MUST FILE AND at the end of 2018 you were THEN file a return if your gross income was at least Under 65 $12, or older $13,600 Under 65 (both spouses) $24, or older (one spouse) $25, or older (both spouses) $26,600 Married filing separately Any age $5 Head of household Qualifying widow(er) with dependent child Under 65 $18, or older $19,600 Under 65 $24, or older $25,300

14 WHO SHOULD FILE? Taxpayers who Had income tax withheld from pay Qualify for the Earned Income Tax Credit Qualify for the Working Family Credit Qualify for the Additional Child Tax Credit Qualify for the Premium Tax Credit Qualify for American Opportunity Credit Qualify for the K-12 Education Credit You rent or own a home

15 TAX CREDITS TO KNOW Earned Income Tax Credit (EITC) Child credits Education credits Property Tax Refund Premium Tax Credit

16 EARNED INCOME TAX CREDIT Refundable federal credit for all who worked in 2018 Eligibility is based on income and family size MN version is called Working Family Credit Must have earned income # of qualifying children Single/head of household, income less than: Married filing jointly, income less than Maximum Credit (up to): 0 $15,270 $20,950 $519 1 $40,320 $46,010 $3,461 2 $45,802 $51,492 $5, $49,194 $54,884 $6,431

17 WHAT IS EARNED INCOME? Includes: Wages, salaries, and tips Net earnings from selfemployment Doesn t include: Non-taxable earned income Payroll deductions for dependent care or retirement plans Union Strike benefits Military combat pay Public Benefits Social Security, SSI, welfare Other income, such as: Unemployment Alimony and child support Interest on bank accounts

18 EITC DELAY SAME IN 2019 Federal tax refunds will take longer for EITC and ACTC recipients IRS will begin processing refunds Feb. 15 Prevent against fraud and identity theft No one can get you refund faster File taxes as planned at a Free site

19 CHILD TAX CREDITS Child Tax Credit (CTC) Tax credit for families that work and claim a child age 16 or younger Additional Child Tax Credit (ACTC) Eligible for CTC, but cannot claim it because taxes are too low More than $3,000 earned income and at least 1 qualifying child Child and parent must have SSN not ITIN Maximum credit amount $2,000 NEW 2018: $500 non-refundable credit for dependents who don t qualify for the CTC, such as children above 17 or elderly parents, or dependents with an ITIN

20 WHO IS A QUALIFYING DEPENDENT * Relationship Legal entitlement Age Marriage Residency Support *This is a general guideline. Some exemptions could apply. It s based on YOUR personal situation!

21 MN K-12 EDUCATION CREDIT The cost of school supplies can add up. Keep your receipts for tax time savings! Maximum credit amount $1,000 per child Who is eligible? Dependents in grade K-12 Meet income limits, which is $37,500 for families with one to two children and $2,000 higher for each additional child beyond two Have itemized receipts of expenses (see handout for qualifying expenses)

22 AMERICAN OPPORTUNITY CREDIT Helps make postsecondary education more affordable Covers qualifying expenses, like tuition, fees, required course materials. Enrolled at least half time Must have 1098-T and itemized receipts Maximum AOOC amount is $2,500, up to $1,000 refundable LIFETIME LEARNING CREDIT Non-refundable credit available for unlimited amount of years for students. Covers qualifying expenses, like tuition and fees. Must have 1098-T Maximum credit $2,000

23 PROPERTY TAX HOMEOWNERS Household income less than $113,150 Owned home on both January 2, 2018 and Jan 2, 2019 Need a 2018 Property Tax Statement from county (receive in March) Maximum credit amount $2,770 for homeowners Based on income and property taxes paid in 2018 RENTERS Household income less than $61,320 Need a Certificate of Rent Paid (CRP) from landlord (receive by Jan 31, 2018) Maximum credit amount $2,150 for renters Based on income and property taxes paid in 2018

24 PREMIUM TAX CREDIT You and every family member listed on your return must have health coverage for the year or qualify for an exemption To qualify, you must have purchased health insurance through MNsure and need Form 1095-A Individuals on Medicare, Medical Assistance, or Minnesota care are not eligible.

25 W-4 INFORMATION Determines how much money to withhold from paycheck ensures you pay the right amount in taxes Claiming allowances Claim one for yourself, one for your spouse, and one for each dependent Can claim additional allowances in certain situations Always fill out the form to the best of your ability Complete a new W-4 for every life event: marriage, birth of a child, getting/losing job

26 2019 ITIN CHANGES Unused ITINs: ITINs not used on a federal income tax return in the last 3 years Expiring ITINs: ITINS issued before 2013 will begin expiring this year, and taxpayers will need to renew them on a rolling basis. The ITINs with middle digits: 73, 74, 75, 76, 77, 78, 79, 81 or 82 will be expiring IRS mailed notification letters Schedule for future expiration and renewal of ITNS are TBA

27 MONEY MENTORS 2 hour commitment a month One-on-one coaching (1 hour) peer learning session (1 hour) 6-month cohort commitment Not financial planning / or advise Coaching/peer learning to help people reach their financial goals and find accountability in doing so.

28 WHAT IS FINANCIAL COACHING? An individualized process that helps people take action to reach their financial goals Based on trust Assumes creative, resourceful and whole Techniques from positive psychology and emotional intelligence Future-focused on behavior change Action oriented

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30 If there s no action step at the end it s been a nice conversation, not financial coaching.

31 MONEY MENTORS Multiple entry points throughout the year (every 3 months we start a new co-hort) If interested apply here

32 FAIR: Financial Access in Reach A new way of banking designed to work for the un(der) and unhappily banked

33 THE UN(DER)BANKED MARKET $50k - $75k 15% 194,400 households in the Twin Cities $30k - $50k 19% > $75k 9% $15k - $30k 24% < $15k 33% 328,000 households in Minnesota 32.6 million households nationwide White 10% Other 22% Asian 14% Black 28% Hispanic 26% Source: 2017 FDIC National Survey of Unbanked and Underbanked Households.

34 THE FAIR PRODUCTS

35 THE FAIR PRODUCTS CONT.

36 FAIR FIT: CHECKING + SAVING FAIR may be a fit for someone who... -Has a imperfect banking history and gets turned away by other banks -Has an account but is paying high and unpredictable fees, like overdraft -Comfortable banking online or mobile app (or wants to try!) -Has a smartphone with a data plan OR secure internet access -Gets paid via check or direct deposit -Doesn t rely on cash FAIR may NOT be a fit for someone who... -Has a history of actual bank fraud -Has limited digital literacy -Has no smartphone or internet access -Doesn t feel comfortable with banking online/mobile -Likes doing their banking in person -Doesn t have access to direct deposit for their income -Prefers operating in cash

37 FAIR FIT: CREDIT BUILDER FAIR may be a fit for someone who... -Has no score or a low score -Has no or few active trade lines -Is willing to make improvements in overall credit profile -Can pay monthly expenses in addition to the $30 payment each month FAIR may NOT be a fit for someone who... -Already has good credit -Already has credit cards that are maxed out or large accounts in collections with no ability to repay -Is struggling to pay basic bills of has habit of missing bill payments -Is in or contemplating foreclosure or bankruptcy

38 ADDITIONAL RESOURCES Free filing <$66,000 myfreetaxes.com Portico Healthnet Mid-MN Legal Aid Where s my refund irs.gov/refunds

39 CONTACT INFORMATION Alica Whitmore Outreach Coordinator Website: prepareandprosper.org Like us on /prepareandprosper Follow us